Intrum Ab · OMXSTO:INTRUM
Intrum Ab — Intrum Justitia — Investor Day (2007)
9 slides from Intrum Ab's investor day presentation, 2007
Slide 1: Purchased Debt – Key support for profitable growth
Kari Kyllönen Director Purchased Debt Purchased Debt – Key support for profitable growth • Employed 1987 • Master of Science from Tampere University CMD Helsinki 2007
Slide 2: Credit Card debt sales in the U.S. market continue to grow rapidly
Credit Card debt sales in the U.S. market continue to grow rapidly $ BN Development and value of debt sales in the United States 140 120 All debts 100 Credit cards 80 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 25% of the total volume are resales of acquired portfolio
Slide 3: Some changes in European PD market
Some changes in European PD market • Withdrawals from too competitive markets • Pricing risks have actualised • Decreasing price trends • Still new entries to the European PD market • Too high prices paid in order to create databases for future benchmarking purposes
Slide 4: Niche operator in the European market
Niche operator in the European market Total Purchased Debt market (non-performing debts) Secured Unsecured No securities handling B2B debts B2C debts No bankruptcies Total Purchased Fresh Old Less cash Debt market High average Lowaverage Low average Less risk credit amount creditamount credit amount
Slide 5: Number of countries in PD business, change in country distribution of portfolios
Number of countries in PD business, change in country distribution of portfolios Germany Others 1999 Spain 1% 2003 Sw eden 2% 2% 8% UK 6 countries 15 countries Austria 30% Austria Book value 2% Book value 10% 182 MSEK 380 MSEK Finland 14% UK 47% Finland 13% Sw itzerland 34% Poland Sw itzerland 20% 1
Slide 6: Cornerstones of Intrum's PD risk strategy
Cornerstones of Intrum’s PD risk strategy Branch and maturity distribution Even country distribution of portfolios Partnership strategy in place Collection excellence Unrivalled debtor databases for analyses
Slide 7: Complete understanding of the local markets and EU lobbying essential
Complete understanding of the local markets and EU lobbying essential Recent examples of law changes • Change of statutes of limitation • Changes in fee structure • Changes in booking order rules • Changes in taxation • Changes in minimum allowance levels etc
Slide 8: Purchased Debt organization
Purchased Debt organization Regional and local organizations will be strengthened CEO Investment committee Group PD Director Local MD’s Central Joint Local portfolios ventures portfolios Managing Analysis from Local Local Director “IJ Central” preanalysis sourcing Analysis from Assistant “IJ Central
Slide 9: Gross collections to PD portfolios continued strong growth in 2006
Gross collections to PD portfolios continued strong growth in 2006 (Including J/Vs, MEUR 110 collected in 2006) Figures in € mn 44.5 Amortization 34.4 22.7 17.2 17.9 Commission 13.2 16.0 9.7 11.9 4.3 Service Line costs 7.4 10.1 5.5 2.0 4.9 0.5 1.4 2.0 16.7 EBITA 10.3 10.1 10.4 10.3 11.6 2001 2002 20